Scrap rate calculator: scrap rate and its cost.
The most basic way to measure production efficiency is to compare the raw material that goes in with the good product that comes out. Use the tool below to see your scrap rate (%) and what it costs you instantly.
Result
- Scrap rate
- 7.41%
- Scrap cost
- $333
By the BOM, 2,500 units of raw material should have been used; an extra 200 units went to scrap.
Measure scrap automatically on every work order
Skala compares planned and actual consumption on every work order and produces the scrap report itself.
Try it free for 14 daysFormula: Scrap quantity = Total used − (Good units × BOM standard). Scrap rate = Scrap quantity ÷ Total used.
How is the scrap rate calculated?
Scrap quantity = Total raw material used − (Good units produced × BOM standard per unit)
Scrap rate (%) = Scrap quantity ÷ Total raw material used × 100
Scrap cost = Scrap rate × Total raw material cost
Example: Say a product's BOM defines 2.5 kg of raw material. For 1,000 good units the ideal usage is 2,500 kg. If production used 2,700 kg, scrap is 200 kg and the scrap rate is 7.4%. If the total raw material cost is 135,000, about 10,000 of it went to scrap.
What does this tool calculate?
- Scrap rate: Shows how far you deviate from your standard BOM.
- Cost of loss: Calculates the monetary value of the raw material lost to scrap.
Accepted scrap rates differ by industry and product; what matters is setting your own standard and measuring the deviation regularly.
Measure scrap automatically on every work order
Instead of estimating with a calculator at the end of the month, Skala compares planned and actual consumption on every work order. Operators enter scrap with its reason on their phones; you see which product and which machine is losing material before the order closes.
- Planned vs. actual consumption
- Reports by scrap reason and work station
- Scrap cost reflected in product cost
Scrap analysis · This month
Questions about scrap calculation
What should the scrap rate be?
An acceptable scrap rate depends on the industry and the product. What matters is setting your own standard and measuring the deviation regularly. If actual scrap is clearly above plan, look at the process, machine settings or raw material quality.
What is the difference between scrap and waste?
Scrap is usually material that is unavoidably lost during production (cut-offs, set-up rejects). Waste is defective output that cannot be used. Recording them separately makes improvement areas clear.
How is scrap cost reflected in product cost?
Scrap is part of product cost. Skala adds actual scrap to the cost of the work order and calculates the product's real unit cost.
Don't guess your scrap,measure it.
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